Some Thoughts on Pricing

Some Thoughts on Pricing

  • Do not list with the REALTOR® who gives you the highest price. Consumer Reports, July 1990 stated,
    "Expect the agent to suggest a price range, but don't let that frame you in. Be aware that some agents will at first suggest a very handsome price. Then, after they have the listing and the house hasn't sold, they'll come back with a pitch to lower the price."
  • If IBM stock is trading between $104 and $108, it does no good to insist on selling at $112. Likewise, your home must be priced within the appropriate range. You must actually "sell" your property twice: first to a home buyer, then to an appraiser. The buyer is more subjective and compares the amenities of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size, and cost-identifiable features in your home against other properties that have sold recently.
  • Matt prepares a thorough, well-researched market analysis to fine-tune your price by taking all those variables into consideration. As the old saying goes: "let's not compare apples with oranges!" As a result, he sells his listings at very close to asking price and he rarely experiences appraisal problems. It's part of the expertise you expect from your REALTOR®.

Statements frequently heard from sellers that really have NOTHING to do with the home's value:

 

  • "Another Agent said it was worth more."

  • "People always offer less than asking price."

  • "The buyer can always make an offer."

  • "My neighbor was able to get his price."

  • "We paid more than that for our home."

Other factors that do NOT affect value:

 

  • Your original purchase price: Chances are you paid market value. Markets change and today we have to deal with the current market conditions which may have changed significantly.

  • Overimprovement: Improvements should be made for enjoyment, not resale. You cannot add an item to a home, select it to your style, use it, then expect a buyer to pay the original cost.

  • The owner's need for money: The Owner's need for money or the fact that the Owner is moving to a more expensive area where he will have to pay more for a home has nothing to do with the homes current market value.

  • The cost to rebuild it today

  • The seller's personal attachment to the property

  • Certain types of improvements

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Contact Information

Photo of Matt Hurlburt Group Real Estate
Matt Hurlburt Group
RE/MAX North Professionals
40 Main St, Suite 550
Burlington VT 05401
Phone: 802-862-5337
Fax: 866-660-0032